Redundancy Policy

The redundancy policy sets out the conditions under which employees can be made redundant and covers all the issues surrounding these procedures.

Redundancy Policy

Redundancies are basically a form of dismissal that occurs when an employee’s job no longer exists. The need of the employer to reduce their workforce or close the business may be the reason behind the redundancy. The redundant employees are eligible for certain rights such as redundancy pay, a notice period, consultation and time off to look for work.

A redundancy policy describes how redundancy decisions are to be made. It also summarizes the statutory rights of employees and ensures to maintain good communication and consultation during the redundancy process. A good redundant policy helps employers to make lawful redundancies.

What to Include In the Redundancy Policy?

The redundancy process needs to be fair and consistent, and this can be ensured with a carefully written redundancy policy. The policy makes the employees aware of their rights while being made redundant and prevent the risks of unfair dismissal claims further down the line. The policy applies to employees who are under an employment contract. Employers should always consider alternative options such as part-time or flexible working to prevent redundancies. The policy helps in the careful selection of redundant staff through a redundancy pooling and selection process. A template outlining all the key points to include in the redundancy policy can reduce the hassle of human resource management and help the HR to manage the redundancy legally and effectively.

Key Points

• The scope of the redundancy policy
• Obligations of consultation and how they will be dealt
• Selection criteria and process
• Redeployment
• Dismissal because of redundancy

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